) are being converted into a regular savings accounts for those have exceeded their withdrawal limits.

The report prepared by Ashish Das, an IIT Bombay professor, says, "design anomalies" are prompting bankers to overcharge BSBDA customers in violation of the Reserve Bank of India's (RBI)
extant regulations. "The moment a 5th debit transaction is done by the
customer in a month, these banks without explicit and voluntary consent
of customers are unilaterally converting the BSBDA into a regular
savings account, requiring high minimum balance and associated service
charges," the report said.
Although the rules allow banks to convert BSBDA into a regular account
or charge a penalty if the withdrawal limits are not met, the objective
of the banking regulator for inclusion banking may be hit.
All banks are mandated by RBI to offer such a facility to those looking
to open a bank account. However, be aware of the restrictions in the
account to avoid financial dejection.
A BSBDA scores over a regular savings account primarily because it does
not require a minimum balance (MAB) to be maintained. Not maintaining
the required MAB in one's regular savings account, which varies from
bank to bank, could attract a penalty, while in BSBDA there is no such
compulsion regarding account balances.
Although the BSBDA is a zero-balance savings account, it comes with restrictions.

Restrictions

Although there is
no limit on the number of deposits that can be made in a month, the
maximum withdrawals per month is limited to just four. This includes
withdrawals from ATMs and other modes like RTGS, NEFT, clearing, branch
cash withdrawal, online transfer, standing instructions, equated monthly
instalments (EMIs) etc. It is, however, left to the banks to decide
whether they want to offer additional withdrawals free of cost or to
charge a fee.

What do you get in a BSBDAYou don't have to
maintain a minimum average monthly balance and no minimum amount is
required for opening the account. The interest rate will be the same as
that on the regular savings account. RBI rules do not put restrictions
on deposits or withdrawals from this type of account, neither does it
have any transaction limits.
You, as an account holder, will get the ATM-cum-debit card and the
passbook facility. All regular features including deposit and withdrawal
of cash at bank branches as well as ATMs, cheque book facility (payable
at par or multi-city) and online funds transfer will be available in
the account. These facilities will be provided without any charges.
BSBDA account holders can open fixed deposits and recurring deposits.
To know more about BSBDA and who should opt for a BSBDA, click
here.

Here are the watch outs

) are being converted into a regular savings accounts for those have exceeded their withdrawal limits.

The report prepared by Ashish Das, an IIT Bombay professor, says, "design anomalies" are prompting bankers to overcharge BSBDA customers in violation of the Reserve Bank of India's (RBI)
extant regulations. "The moment a 5th debit transaction is done by the
customer in a month, these banks without explicit and voluntary consent
of customers are unilaterally converting the BSBDA into a regular
savings account, requiring high minimum balance and associated service
charges," the report said.
Although the rules allow banks to convert BSBDA into a regular account
or charge a penalty if the withdrawal limits are not met, the objective
of the banking regulator for inclusion banking may be hit.
All banks are mandated by RBI to offer such a facility to those looking
to open a bank account. However, be aware of the restrictions in the
account to avoid financial dejection.
A BSBDA scores over a regular savings account primarily because it does
not require a minimum balance (MAB) to be maintained. Not maintaining
the required MAB in one's regular savings account, which varies from
bank to bank, could attract a penalty, while in BSBDA there is no such
compulsion regarding account balances.
Although the BSBDA is a zero-balance savings account, it comes with restrictions.

Restrictions

Although there is
no limit on the number of deposits that can be made in a month, the
maximum withdrawals per month is limited to just four. This includes
withdrawals from ATMs and other modes like RTGS, NEFT, clearing, branch
cash withdrawal, online transfer, standing instructions, equated monthly
instalments (EMIs) etc. It is, however, left to the banks to decide
whether they want to offer additional withdrawals free of cost or to
charge a fee.

What do you get in a BSBDAYou don't have to
maintain a minimum average monthly balance and no minimum amount is
required for opening the account. The interest rate will be the same as
that on the regular savings account. RBI rules do not put restrictions
on deposits or withdrawals from this type of account, neither does it
have any transaction limits.
You, as an account holder, will get the ATM-cum-debit card and the
passbook facility. All regular features including deposit and withdrawal
of cash at bank branches as well as ATMs, cheque book facility (payable
at par or multi-city) and online funds transfer will be available in
the account. These facilities will be provided without any charges.
BSBDA account holders can open fixed deposits and recurring deposits.
To know more about BSBDA and who should opt for a BSBDA, click
here.